PurposeCloud-based technologies are reliably improving Information Technology (IT) environment incorporating changes and modifications to the present business structure. Cloud computing enables small and medium-sized businesses (SMBs) to organize and exchange pertinent data and information in real time. This study checks out the influence of cloud-based services (IT infrastructure, expenses of cloud services, cloud data security and IT knowledge of human resources) on customers' satisfaction in SMBs.Design/methodology/approachCloud computing offers a way to coordinate and share organizational and personal information and data. The adoption of cloud services is one of the most emerging technological advances in the current competitive business environment. Cloud-based services allow start-ups or SMBs to take advantage of technological advancements and respond more quickly to changing consumer demands. In the available literature, cloud computing has received a lot of attention. However, there is also a research gap in creating a paradigm that links the value development drivers in the electronic industry with the leveraging impact of cloud and intercloud computing resources for start-ups and SMBs. A hypothetical model was constructed based on a literature review, and the associations between the latent variables were investigated utilizing structural equations.FindingsFindings from the study confirmed the validity of the proposed model for customer satisfaction assessment. Besides, the results showed that customer satisfaction is affected by cloud-based services in SMBs. The results illustrated that IT infrastructure influences customer satisfaction significantly and positively, with a T-value of 2.42. Also, the results confirmed that the cost of cloud services with a T-value of 2.68 affects customer satisfaction significantly and positively. Cloud data security also impacts customer satisfaction with a T-value of 5.20. The results also showed that the IT knowledge of human resources affects customer satisfaction with a T-value of 3.01.Originality/valueThe main originality of this research is proposing a new conceptual model to assess the impact of cloud-based services on the satisfaction of the customers in SMBs.